hitesh ji,
what is your view on page industries now at 80 PE?
Posts in category Value Pickr
Hitesh portfolio (14-10-2015)
Screener.in: The destination for Intelligent Screening & Reporting in India (14-10-2015)
Thanks for pointing, will check
Granules India Ltd (14-10-2015)
Thanks Anindya for correcting me. I missed the point.
Granules India Ltd (14-10-2015)
@raj This is a 50:50 JV so you have to divide 550 by 2.You can refer to Q3 concall transcript as well (I made a comment earlier on the same topic, you can check that one too)
Torrent Pharma Ltd (14-10-2015)
When abilify was launched then there were only 4 players. Now Apotex has joined as a 5th player. Couple of days back Aurobindo also got approval. Lupin and Sun have tentative approval. Hence prices should crack, but how much that only time will tell.
Granules India Ltd (14-10-2015)
@Rajesh_R At full capacity omnichem joint venture will create 550 crores...probably in FY18 or FY19 which will be more than 20% and will contribute significantly to profit as margins are likely to be better. One reference is below.
http://fundamental-picks.in/2015/08/granules-india-ltd-a-healthy-wealthy-particle/
You can also refer to various research reports.
NCL Industries – Resumption of growth? (14-10-2015)
FY15 EBIT for board business was 30% of overall EBIT. Revenue was 15%+ of total revenue for FY15. This business has been growing at more than 20% with margins of 17% odd.
I had also read in ET that this business can be valued at 150-175 Crs.
Even if we value this business at 150 Crs and deduct the same from current mkt cap of 467 Crs. then the residual business is still available at 317 Crs. or EV of 455 Crs. (If I don't allocate any debt towards board business) or EV/EBITDA (FY16-arrived at by extrapolating FY16Q1 nos. This might be naive and too layman but I think safe assumption as capacity utilisation will go up and prices may hold) of 4.6-4.8 times or EV/Tonne of 38-40 US$ odd, which I think is still not expensive, considering that the cement business has good earnings visibility and better times ahead.
Figures are approximations.
Discl: Invested & maybe biased.
Granules India Ltd (14-10-2015)
Hi Amit, Omnichem JV will contribute around Rs. 250 crs to GI's top line. By the time this JV is fully operational it could as be an addition of just 10% of sales. Not huge but definitely helps.
Disc: Invested.
Torrent Pharma Ltd (14-10-2015)
Hi Hitesh, Firstly, I would like to thank you for sharing your knowledge and wisdom. I also follow you on twitter.
I have question about TP's abilify sales for 2017 on wards. Since Abilify is a sticky drug - is it possible that Torrent will do similar sales (let's say they do $200 million in 2016) in next few years?
Astral polytechnik ltd (14-10-2015)
Sumir Chadha of WestBridge Capital summarises the business and rationale for investment in Astral. They had invested in Astral in March 2012 when market cap was sub 500 crore and today it is more than 5000 crore (they have partially exited this year)
Astral – impenetrable moat:
One of the things we loved about Astral was that when we spoke to plumbers in India – our team went and spoke to 1,000 plumbers across the country -they said they loved Astral. Because over a decade Astral has gone out and reached out to them, built the brand and these are the decision makers. So, when we get the pipes replaced in our house, none of us know which pipe is going inside our house, except for the plumber. So, Astral built this very powerful brand in India. That is why they were able to grow 40% a year for eight years in a row. They could scale the business beautifully. It is very hard for a competitor to come tomorrow and change all these plumbers minds. Because over many years they have built a lot of comfort with the brand, it is reliable and very high quality. If a company has a long term competitive advantage like that, it can win in the market place and make money for our investors.